OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” to the $500 million 3.00% 3-year senior unsecured notes, due March 22, 2022, issued by Ameriprise Financial, Inc. (Ameriprise Financial) (headquartered in Minneapolis, MN) [NYSE: AMP]. The outlook assigned to the Credit Rating (rating) is stable. All other ratings of Ameriprise Financial and its subsidiaries are unchanged.
AM Best expects the proceeds from the issuance to be used for general corporate purposes including repayment or redemption of future note maturities. The debt offering is a drawdown from the company’s shelf registration. With this issuance of the new debt instrument, AM Best calculates Ameriprise Financial’s debt-to-capital ratio to rise initially to approximately 34%, which remains in line with AM Best’s guidelines for the rating level. In addition, AM Best expects interest coverage to remain very strong. The financial leverage, along with interest expense coverage, is expected to remain well within AM Best’s expectation for the assigned rating.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.